Helping You Prepare for the Unexpected                                     February 2013

Want Better Results?

Process Improvements - The Quick Way!
There are 3 reasons process improvement initiatives fail.  They are:
1. Projects don't align with long term goals
2. The wrong people are involved
3. The methodology is too complex

Let me address the first two issues quickly, and then share a very direct method that will help you make process improvements on a continuous basis - the real way they are meant to be done.

When you want any kind of behavior to change, you can lay down the law, scream, and tell people what to do.  What happens?  Things might change briefly, but sooner or later they go back to where they started.  For any kind of change to grab hold, it must tie to the overall goals of the business.  If you ask someone to make a change that isn't mission critical, it won't happen.  Show how the new process is going to help the business make more money, grow, improve productivity & quality, and lastly, improve customer & employee satisfaction.   Take it a step further, and incorporate the changes into compensations plans, too.  People need to be hardwired to focus on what's most important to get done.

The second reason is that the wrong people are involved.  This one is easier to overcome. At the bottom of the newsletter, I list 10 items to consider in selecting team members.  Spend a few minutes here, and I guarantee that your teams will have the right talent and diversity to drive results.

Now, it's time for the third point - the process improvement methodology is too complex.  To keep it simple,  I want someone on your team to type up all the steps in the current process.  At the top of the page, type "As-Is" Phase. This page represents how the process is done currently.  When your team is working on this phase, they will smirk, smile and say "I can't believe we do this.  No wonder we are tripping over ourselves."

The next step is to identify whether each step adds value, is necessary to perform another step, or is just plain wasteful.  Remember the golden rule of process improvements - "eliminate all waste and unnecessary steps."  Your ultimate goal is to provide value to your customer.  For  each step, identify 'VA" or "NVA" - value- added or non-value added.

The last step in the "As-Is" phase is to start noting where changes can be made to improve the process.  Again, focus on changes that will improve profitability, productivity, and customer satisfaction.

Let's move on to the final phase in the methodology.  This is the "To-Be" Vision. Create a "To-Be" document. Place all steps that are labeled "VA," into this document, and work in the new steps that will further improve the process.  If you can flowchart the "As-Is' and "To-Be" phases, you will be better positioned to explain them to any audience.

When you are designing the "To-Be" phase remember these 5 items:
1. The "To-Be" should be an improvement, not a repair of the "As-Is."
2. Look to prevent mistakes from occurring in the "To-Be" process.
3. Place decision-making in the process at the lowest level possible.
4. Simplify the process.
5. Focus on the long-term.

Once you have the "To-Be" Vision created, it's time to test it, make adjustments as necessary, and implement it. 

When you implement process improvements, your ultimate goal is to provide value and eliminate waste.  Your processes should allow you to respond to threats and opportunities with relative ease.  The steps in your "To-Be" Vision must be repeatable and simple!  

You can make process improvements as formal or informal as you like.  To start, you might want to make it formal - assign a leader, define expectations, estimate financial improvements, and establish a time line.  As you get better, you will be able to attack new improvement ideas quickly.  People will have the right tools, and know what to expect.

There isn't a reason to be intimidated.  Sure, you can really get into a statistical approach and pay consultants 6 figures or more to help you.  Frankly, some of you might need to do that.  For others, go after it on your own.  You can get it done! 

Feeling Numbery
Here are a few fun facts and figures that I picked up over the past month.  Enjoy!

• There were 175 million tweets per day in 2012
• 34% of marketers have generated leads using Twitter
• 48% of Fortune 100 companies are on Google+
• 47% of Hispanic consumers use Google+ vs. 18% of US consumers
• 77% of B2C businesses acquired customers via Facebook
• 43% of B2B businesses acquired customers via Facebook

The "look at me" mentality that can arise from Twitter, Google+ and Facebook sure does have some powerful positive aspects, too.  How is your business using these tools to its advantage?

Process Improvement Tip

As is the case with most any project, having the right people on your process improvement team is critical to the success of the project.  When you are looking to staff these initiatives, select people who have demonstrated and OWN the following capabilities:

1. A comfort level with data
2. Good problem solvers
3. Wide knowledge of the process
4. If number three isn't available, select your best thinkers
5. Team members are credible to peers - they might have to sell new ideas
6. Good networkers - you want people who can get information  
7. Comfortable with conflict - the only people who like change are babies!
8. Flexible communicators
9. Ok with failure
10. Ok with ambiguity

You may not find all 10 skills in every person, but make sure your team has someone who has strength in at least a few of these areas. Take it from someone who has run Six Sigma projects and programs  - you want these skills throughout your team.  If the team doesn't possess them, it's going to be a nightmare for you - and them!